FTC Warning Letter to Lendio — Misleading Small Businesses About CARES Act PPP Assistance (May 14, 2020)

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A warning letter dated May 14, 2020 from the Federal Trade Commission to Lendio, Inc., signed by an FTC associate director in the Division of Financial Practices and by an associate general counsel of the U.S. Small Business Administration. The letter advises that Lendio and its lead generators may be unlawfully misleading small business consumers about federal loans or other temporary small business relief, in violation of Section 5 of the FTC Act, 15 U.S.C. § 45. It states that FTC staff reviewed advertising by or on behalf of Lendio, including IT Media Solutions, LLC and the website sba.com and Merchants Advance Network, Inc. and the website manfunding.com, as recently as May 8, 2020, and describes claims about connecting consumers to approved Paycheck Protection Program lenders and a stated fee of $495 per business. The letter asks for a response within 48 hours.

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May 14, 2020 
Via Electronic Mail 
Brock Blake, CEO 
Ethan Hanson, SVP, General Counsel 
Lendio, Inc. 
4100 Chapel Ridge Road, Suite 500 
Lehi, UT 84043 
ethan.hanson@lendio.com 
Re: 
Misleading Small Businesses About Emergency Assistance in the 
Coronavirus Aid, Relief, and Economic Security Act 
WARNING LETTER 
Dear Messrs. Blake and Hanson, 
This letter is to advise you that Lendio, Inc. (“Lendio”) and its lead generators may be 
unlawfully misleading small business consumers about federal loans or other temporary small 
business relief in violation of the Federal Trade Commission (“FTC Act”). 15 U.S.C. § 45. 
As you know, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) 
is intended to provide emergency relief to individuals, families, and businesses under severe 
financial strain amid the novel coronavirus outbreak (COVID-19). The Act offers vital assistance 
to small businesses struggling to keep their workforces employed, by creating a new Section 7(a) 
loan program: the Paycheck Protection Program (“PPP”). Small businesses may apply for PPP 
loans through U.S. Small Business Administration (“SBA”)-authorized lenders or other lenders 
SBA has determined to be eligible. 
FTC staff has reviewed advertising and marketing by, or on behalf of, Lendio, including 
IT Media Solutions, LLC and the website sba.com, and Merchants Advance Network, Inc. and 
the website manfunding.com, as recently as May 8, 2020. 
These websites have included the following claims: 
x Using the name sba.com, the website prominently has touted “Your Paycheck 
Protection Program Loan starts here” and has solicited consumers to “Get 
Started” with their PPP loan applications; 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
x Consumers who have scrolled further down have been told that sba.com 
“connect[s] you to our large nationwide network/marketplace of approved PPP 
(Paycheck Protection Program) lenders”; and 
x Merchants Advance Network has represented it is an authorized SBA loan 
packager who “only charge[s] a nominal fee of $495 per business” and “will work 
with you hand-in-hand to apply you for ALL eligible relief products that the SBA 
has to offer.” Its website, manfunding.com, encourages consumers to “Apply 
Now” and “Find a Participating Lender” for PPP loans. 
These and other claims on these websites suggest, among other things, an affiliation or 
relationship with the SBA and approved PPP lenders and that consumers can get PPP loans by 
applying on these sites. In addition, agents, including lead generators and others providing PPP 
application assistance, are prohibited from charging fees to PPP loan applicants, either directly or 
by taking a fee out of the loan proceeds. To the extent that any of these claims are not truthful, 
omit material information needed to prevent the claims from misleading consumers, or are not 
substantiated, they would violate Section 5 of the FTC Act, 15 U.S.C. § 45, which prohibits 
“unfair or deceptive acts or practices in or affecting commerce.” Under Section 5, it is unlawful 
to make representations that are likely to deceive consumers, including small businesses. This 
includes express or implied representations, whether made directly or indirectly. 
Lendio should take immediate action, including by reviewing and monitoring all 
advertising and marketing used by, or on behalf of, Lendio in any form (including websites, 
social media, emails, telemarketing, and text messages), to ensure all deceptive claims are 
removed. You also should act immediately to remediate any harm to small business consumers 
stemming from such claims. This letter is not meant to contain an exhaustive list of possible 
violations related to your products or operations. 
Please notify us within 48 hours of the support Lendio has for the types of claims 
described above and specific actions Lendio has taken to address the FTC’s concerns by 
emailing COVID19ResponseDFP@ftc.gov. FTC investigators have copied and preserved your 
website and marketing materials and will continue monitoring your representations to evaluate 
whether further action is appropriate in connection with your activity. If you have any questions 
regarding compliance with the FTC Act, please contact us at COVID19ResponseDFP@ftc.gov. 
Sincerely, 
Digitally signed by MALINI 
MALINI 
MITHAL 
Date: 2020.05.14 12:34:15 
MITHAL 
-04'00' 
Malini Mithal 
Associate Director, Division of Financial Practices 
Federal Trade Commission 
Digitally signed by Eric S. 
Benderson 
Eric S. Benderson 
Date: 2020.05.14 16:01:05 -04'00' 
Eric S. Benderson 
Associate General Counsel for Litigation 
U.S. Small Business Administration

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